City of Gonzales
PUBLIC WORKS / CITY ENGINEER DEPARTMENT
STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: February 7, 2022
FROM: Patrick Dobbins, Public Works Director/City Engineer THROUGH: René L. Mendez, City Manager
SUBJECT: Resolution No. 2022-15 Approving the Shortlist of Prequalified Design-Build Entities
RECOMMENDATION
It is recommended that the City Council Adopt Resolution No. 2022-15, A Resolution of the City Council of the City of Gonzales approving the Shortlist of Prequalified Design-Build Entities for the Community Center Complex Project and authorize staff to issue the Request for Proposal to the shortlisted DesignBuild Entities after Council approves the Design Criteria.
BACKGROUND
At the March 1, 2021 City Council meeting, the City Council accepted staff recommendation to use Design/Build delivery for the construction of the Community Center Complex Project. To assist City staff on the project, at the May 3, 2021 City Council meeting, the Council approved a contract with Swinerton Management and Consulting to provide Program Management and Construction Management Services on the project.
As mentioned in the staff report at the March 1, 2021 Council meeting, the benefits of the Design/Build approach are as follows:
Benefits:
1. Increased collaboration between the city, our Program Manager, the architect, and the contractor.
Unlike the traditional design/bid/build approach used for most municipal improvement projects, the contractor is involved during preparation of the final design plans and will provide suggestions to improve the project.
AGENDA
ITEM
16 2. Should expedite project completion as site work (ie, grading, tree removal, underground utility work) will begin in advance of approval of the building plans.
3. Cost management should be easier as there are fewer change orders and claims as the the builder is involved throughout the design process. And the city’s Design/Build contract will stipulate a maximum agreed-to-contract amount
4. The biggest benefit is the innovation that will come from the Design/Build teams due to the competitive nature of the city’s Request for Proposal as the three short-listed DBE teams will develop a comprehensive design for the project as part of their proposal.
On July 30, 2021, the city released a Request for Qualifications (RFQ) for the Community Center Complex Project for interested architects and general contractors to provide the city with a State of Qualifications as Design/Build teams. The RFQ was provided to numerous local contractors and architects. The RFQ was also emailed to various builder exchanges and construction leads services including the Central Coast Builders Association in Salinas for contractors and architects to be aware of the opportunity.
Prior to releasing the RFQ, staff was very intentional in our outreach efforts to local architects and contractors regarding the upcoming opportunity. This included sending a Notice of Pending RFQ to officers of the American Institute of Architects Monterey Bay Chapter and to the Central Coast Builders Association in Salinas for distribution to their members.
A prequalification conference and site visit was conducted on August 24, 2021. Staff issued several addendums to address questions submitted by the Design-Build Entity (DBE) teams. By the September 30, 2021 deadline, the City received seven Statement of Qualifications (SOQ) packages containing the completed prequalification questionnaire and financial statements.
REVIEW AND ANALYSIS
Seven SOQ packages were submitted by the following teams comprised of a contractor, lead architect and various design subconsultants (listed in alphabetic order):
• Ausonio Inc of Castroville, CA/Nineteen Six Architects • Bernards of Fresno, CA/Perkins Eastman
• Blach Construction Company of Monterey, CA/Steinberg Hart • Deide Construction Inc of Woodbridge, CA/LDA Partners • Dilbeck & Sons, Inc of Salinas, CA/SVA Architects
• Otto Construction of Monterey, CA/WRNS Studio
• Quiring General, LLC of Fresno, CA/Paul Halajian Architects Receiving seven DBE SOQs exceeded staff’s expectations and demonstrated builder’s interest in the project and the results of staff’s extensive outreach. The prequalification packages were reviewed by an Evaluation Committee comprised of city staff, Swinerton Management & Consulting project managers, city’s finance director, and Swinerton’s financial controller. The State Public Contract Code (Chapter 4. Local Agency Design Build Projects [22160 – 22169]) permits the prequalification and shortlist of qualified design-build entities whose proposals are carefully evaluated for final selection.
While the City was conducting a series of open house/public outreach events and conducting public surveys about the potential amenities of the community center, the Evaluation Committee scored and ranked the SOQs. Each DBE team had to satisfy a mandatory pass/fail criterion and a weighted scoring criteria that emphasized a requirement of relevant experience with the construction and design of community centers, public libraries, city facilities, and new construction. The Evaluation Committee scored the SOQs using the evaluation criteria and weightings summarized as follows:
Mandatory Pass/Fail Criteria:
1. Cover letter with acknowledgement of addendums
2. Signed Declaration
3. Listing of Design/Build Team including general contractor, architect, landscape architect, structural, mechanical, electrical and civil engineers and others.
4. Required Licenses and Registrations of Design-Builder’s General Contractor, Architect, and Professional Engineers
5. Prevailing Wage Compliance
6. Ability to provide specified insurance.
All seven submittal packages passed the mandatory requirements.
Weighted evaluation criteria on relevant experience:
1. Financial strength - Several financial factors were reviewed to assess the financial strength of the DBE for the project, including working capital, debt to equity ratios, type of financial report submitted: “audited” or “reviewed”, revenue in past three years, and the strongest financial reports received more favorable marks
2. Relevant experience of the Design/Build Team – The Evaluation Committee looked at the Team’s experience working together on Design/Build Projects. Teams with recent experience on Community Centers, Libraries and/or Teen Centers, and experience on multiple team /build projects received more favorable marks
3. Relevant experience and training of key personnel - The Evaluation Committee looked at the experience of the team’s proposed Superintendent and Project Manager with experience on relevant Design/Build projects receiving more favorable marks.
4. Details on the contractor’s Apprenticeship program (ie, different crafts in the firm’s apprenticeship training in the past year, when the program was approved by the California Apprenticeship Council, number of apprentices employed by the firm during the past three years).
5. Safety record – The contractor’s safety record was deemed acceptable if their Experience Modification Rate for the previous three-year period was an average of 1.00 or less. Also asked for the firm's injury/illness rate and average lost work rate for the previous three-year period.
6. Termination/Failure to complete contract, violations, claims, arbitration, and litigation After a thorough and careful review, The Evaluation Committee presented the results of their review of each SOQ to the City Manager. Based on their evaluation and discussion with the City Manager, the following three highest scoring Respondents are recommended for short-listing to receive the DBE RFP: (listed in alphabetical order)
• Bernards of Fresno, CA/Perkins Eastman
• Blach Construction Company of Monterey, CA/Steinberg Hart • Otto Construction of Monterey, CA/WRNS Studio
The SOQs from these three DBE Teams were determined to be stronger submittals based on the following:
1. The submitted financial statements demonstrated these three teams have the capability and wherewithal needed for the project
2. The architect and contractor on these three teams have significant experience working together on numerous Design/Build projects.
3. The contractor’s Project Manager and Superintendent on each of these three teams have significant experience working on Design/Build projects.
If the DBE shortlist is approved, the RFP will be issued to three shortlisted DBE teams which includes the final Design Criteria and will be invited to submit a formal proposal. The RFP process will include paying a $100,000 stipend to each of the two unsuccessful DBE teams. Providing a stipend to DBE teams that are not selected is standard practice on Design/Build projects and the guidelines provided by the League of California Cities. The stipend is paid to the short-listed prequalified proposers who submit a complete proposal fulfilling all the requirements, but do not win the project.
The use of a stipend is typical for the proposal phase of a Design/Build project for the following reasons:
1. Enhances interest in the project from highly qualified design-build teams.
2. Helps defray some of the design costs incurred by the unsuccessful design-build teams
3. Provides an incentive for the design/build teams to expend the appropriate time, money and resources to produce a very creative and comprehensive design and “best value” for the project.
Another reason and benefit of providing the stipend, which is not readily apparent is that the City will own the design documents prepared by the DBE teams, and be able to incorporate aspects of their submitted designs in the final overall project design. In short, the City would own all three designs.
The three Design/Build Teams will invest significant time and effort to investigate and evaluate the project, analyze different approaches to performing the work, assembling a design team, coordinate, meetings with the city and prepare a design, detailed sufficiently so the builder and subs can price their work. Selection of the successful DBE will be based on the DBE’s proposal that provides for the “best value” to the City as defined Sections 22160‐22169 of the California Public Contract Code.
How Recommendation Supports the Vision
Gonzales will continue to be a safe, clean, family-friendly community, diverse in its heritage, and committed to working collaboratively to preserve and retain its small-town charm.
Explain: Constructing a Community Center will provide residents with a facility for a wide variety of public and private functions, recreation programs, increase economic vitality of local businesses and other activities which will enhance the quality of life of Gonzales residents.
Explain how the Recommendation Directly Implements the Mission The City Council and Staff of the City of Gonzales will realize our Vision by providing the leadership, commitment, and resources necessary to provide excellent services that enhance the quality of life of our diverse community. X Yes No N/A
Explain: Please see explanation above for the Mission.
City services will be delivered in a cost-effective, respectful, and friendly manner to insure the safety and well-being of the residents and the promotion of business, recreational, housing and employment opportunities in an environmentally sustainable manner. X Yes No N/A Explain: See Vision explanation above.
Strong fiscal policies allow us to provide appropriate infrastructure for:
• Public Safety X Yes No N/A
• Housing X Yes No N/A
• Recreation X Yes No N/A
• Environment X Yes No N/A
• Education X Yes No N/A
ALTERNATIVES
The alternative is to reject all Statement of Qualifications and direct staff to re-issue the Request for Qualifications.
BUDGET IMPACT
The current cost estimate for the Community Center Complex is $34,800,000 (base program) plus a stand-alone gymnasium (~$10,000,000), which is expected to be funded through various sources including Measure X, Community Development Block Grant monies, State funds, other city funds and private contributions.
If approved, the FY 2021-2022 budget impact short-term cost impact is $200,000 as a result of the stipend for two of the DBE firms. The winning DBE firm would be awarded the contact to construct the Community Center Complex.
CONCLUSION
It is recommended that the City Council Adopt Resolution No. 2022-15, A Resolution of the City Council of the City of Gonzales approving the Shortlist of Prequalified Design-Build Entities for the Community Center Complex Project and authorize staff to issue the Request for Proposal to the shortlisted DesignBuild Entities after Council approves the Design Criteria.
Attachments:
1. Resolution No. 2022-15